New, high-quality fake Rs.500 notes in circulation; How to identify
What's the story
The Ministry of Home Affairs (MHA) has sounded an alert on a new variant of fake ₹500 notes in circulation in the market.
The alert has been sent to all major financial and regulatory bodies, including DRI, FIU, CBI, NIA, SEBI, etc.
The counterfeit notes are similar to genuine ones in terms of quality and print, making it difficult to detect them.
Identification
Subtle spelling error distinguishes counterfeit notes
The fake ₹500 notes are almost identical to the real ones, and it's a small but crucial spelling mistake that gives them away.
In "RESERVE BANK OF INDIA," the "E" in "RESERVE" has been erroneously replaced with an "A."
This discreet error could easily be missed if one doesn't examine closely, making these counterfeits especially lethal, a senior government official said.
Vigilance
Financial institutions and banks on high alert
Banks, financial institutions, and other agencies have been put on alert in view of the circulation of these fake notes.
A picture of the suspected fake currency has also been circulated for help with identifying the notes.
Authorities have urged citizens and institutions to be alert and report any suspicious currency they encounter.
Prevention
Government measures to curb counterfeit notes
A senior official associated with the investigation of terror financing has said that it would be impossible for any agency to ascertain how many counterfeit notes are in circulation.
The only data available from the government is through various sources, including counterfeit notes submitted to banks by the public. However, these figures don't reflect the actual number of counterfeit notes in circulation.
Measures
Government's response to counterfeit currency issue
In recent debates in Parliament, the government has discussed steps taken to check the circulation of fake notes.
These include penal provisions under the Bharatiya Nyaya Sanhita, 2023 (BNS) and the Unlawful Activities (Prevention) Act, 1967.
The government has involved the National Investigation Agency (NIA), FICN Coordination Group (FCORD), and Terror Funding & Fake Currency (TFFC) Cell to effectively address the issue.